-
Net Sales were $84.5 Million in the Second Quarter of Fiscal Year
2009, a decrease of 1% from $85.4 Million in the Second Quarter of
Fiscal Year 2008.
-
Diluted Earnings per Share from Continuing Operations were $0.28 in
the Second Quarter of Fiscal Year 2009, Compared to $0.27 in the
Second Quarter of Fiscal Year 2008.
-
Patient Enrollment Completed for the MemoryGelTM
Post-Approval Study.
Mentor Corporation (NYSE:MNT), a leading supplier of medical products
for the global aesthetic market, today announced financial results for
the second quarter ended September 26, 2008.
“We continue to manage the elements of our
business that we can control in this challenging economic environment.
Although net sales were generally flat, we continued to grow share and
increased the mix of our MemoryGelTM breast
implants being used in the domestic market. This has offset declining
domestic unit trends for the cosmetic segment of the business.
Additionally, we saw strong demand for reconstruction products and
stable international sales growth. Finally, we are pleased that we have
met our commitment to complete patient enrollment in the MemoryGel
Post-Approval Study well in advance of the FDA mandated deadline,”
said Joshua H. Levine, President and Chief Executive Officer of Mentor
Corporation.
Total Net Sales
Total net sales were $84.5 million in the second quarter of fiscal year
2009, a decrease of 1% from net sales of $85.4 million in the second
quarter of fiscal year 2008. The decrease in net sales is primarily
attributable to a decline in domestic breast implant sales. This
decrease was partly offset by growth in international sales and growth
of the Company’s reconstruction products
across all markets. Reconstruction products include tissue expanders
sold worldwide and NeoFormTM dermis tissue sold
domestically. Total net sales for the second quarter of fiscal year 2009
included foreign exchange benefits of $1.0 million.
Gross Profit and Gross Margin
Gross profit for the second quarter of fiscal year 2009 was $58.9
million, or 69.7% of net sales, compared to $59.9 million, or 70.2% of
net sales, in the second quarter of fiscal year 2008. The second quarter
of last year included a $1.4 million charge for the “step-up”
valuation of inventory associated with the Perouse acquisition.
Excluding this charge, gross margin on a non-GAAP basis was 71.8% for
the second quarter last year. The current year gross margin percentage
has been negatively impacted by lower production volumes, manufacturing
support costs and inventory reserves.
Selling, General and Administrative
Expenses
Selling, general and administrative expenses (SG&A) in the second
quarter of fiscal year 2009 were $38.0 million, or 45.0% of sales,
compared to $33.4 million, or 39.1% of sales, in the second quarter of
fiscal year 2008. The increase over last year primarily relates to
higher costs associated with domestic and international marketing
infrastructure and programs, partly offset by lower incentive
compensation. The second quarter of fiscal year 2009 includes
approximately $1.5 million in expenses related to the evaluation of a
potential strategic opportunity. Excluding this $1.5 million, SG&A would
have been 43.2% of sales in the second quarter of fiscal year 2009.
Research and Development Expenses
Research and development expenses in the second quarter of fiscal year
2009 were $10.9 million, a decrease of $1.3 million, or 11%, from the
second quarter of fiscal year 2008. Spending reductions were primarily
associated with MemoryGel post-approval enrollment and dermal filler
development costs.
|
--
|
|
Dermal Fillers
|
|
|
|
Mentor anticipates approval for Prevelle(R) Shape (formerly
Puragen(TM) Plus) in the fourth quarter of fiscal year 2009. The
clinical study for Prevelle(R) Volume (formerly DGE) is complete,
with anticipated FDA submission in the fourth quarter of fiscal year
2009 and anticipated approval in the second quarter of fiscal year
2010.
|
|
|
|
|
|
--
|
|
Botulinum Toxin Type A Program
|
|
|
|
All studies to support the cosmetic indication for glabellar
rhytides, or frown lines, have been completed or are in the
follow-up phase. Data analysis is now complete for the first of the
three cosmetic pivotal trials and the study report has been
submitted to the FDA. The results are encouraging with all study
endpoints achieving high statistical significance.
|
|
|
|
|
|
|
|
With the Phase I study now complete for cervical dystonia/spasmodic
torticollis indication, next phase clinical trials are now in the
design and planning stage.
|
|
|
|
|
|
--
|
|
MemoryGel(TM) silicone gel-filled breast implants Post-Approval
Study (PAS)
|
|
|
|
As of October 30, 2008, Mentor has completed patient enrollment in
the PAS. The Company has exceeded the target of 42,900 patients
required by the PMA post-approval conditions.
|
Net Interest Income (Expense) and Other
Income (Expense)
Net interest income (expense) was $(0.8) million and $(0.1) million in
the second quarter of fiscal year 2009 and 2008, respectively. The
decrease in interest income was due to lower cash and marketable
securities balances as a result of repurchases of shares of the Company’s
common stock during fiscal 2008. The increase in Other Income (Expense)
over the prior year mainly relates to favorable currency gains
associated with the strengthening of the US Dollar.
Effective Tax Rate
Mentor’s effective tax rate for continuing
operations in the second quarter of fiscal year 2009 was 5.2% compared
to 26.0% in the second quarter of fiscal year 2008. This decrease was
primarily due to a $2.3 million tax benefit related to a restructuring
of the Company’s foreign operations.
Earnings Per Share
Excluding the results of discontinued operations, Mentor reported
diluted earnings per share from continuing operations of $0.28 in the
second quarter of fiscal year 2009, compared to $0.27 reported in the
second quarter of fiscal year 2008. Excluding the impact of the $1.5
million in expenses related to the evaluation of a strategic opportunity
and the $2.3 million tax benefit noted above, non-GAAP diluted earnings
per share from continuing operations were $0.24 for the second quarter
of fiscal year 2009. Excluding the $1.4 million charge for the “step-up”
valuation of inventory associated with the Perouse acquisition, diluted
earnings per share from continuing operations on a non-GAAP basis were
$0.29 in the second quarter of fiscal 2008.
Balance Sheet (comparison to prior
year-end)
Mentor ended the second quarter of fiscal year 2009 with $97.8 million
in cash and marketable securities, compared to $109.9 million at the end
of fiscal year 2008.
Fiscal Year 2009 Guidance
|
Mentor is updating its full fiscal year 2009 guidance as follows:
|
|
|
Net sales in the range of $355 million to $370 million; and
|
|
|
Diluted GAAP earnings per share in the range of $1.10 to $1.20.
|
Conference Call
Mentor Corporation has scheduled a conference call today regarding this
announcement. Those interested in listening to a recording of the call
may dial (800) 839-3011 at 6:00 p.m. ET today until Midnight ET,
Wednesday, November 12, 2008. You may also listen to the live web cast
at 5:00 p.m. ET today or the archived call at www.mentorcorp.com
under Investor Relations and “Audio Archives.”
Safe Harbor Statement
This release contains forward-looking statements including, but not
limited to, statements relating to Mentor’s
current and anticipated product development activity and expenses, and
market acceptance of those products; the approval with conditions by the
FDA of the Company’s MemoryGel silicone gel
breast implants premarket approval application (PMA); the continuation
of clinical studies with respect to the Company’s
botulinum toxin Type A program; the development program for a portfolio
of hyaluronic acid-based dermal fillers; domestic and international
marketing programs; and fiscal year 2009 guidance with respect to net
sales and diluted earnings per share. These forward-looking statements
and the assumptions about the factors that influence them are based on
the limited information available to Mentor at this time.
A number of factors could cause actual results to differ from the
forward-looking statements including, but not limited to, U.S. market
acceptance and adoption of MemoryGel breast implants; patient follow-up
in the FDA-mandated post-approval study for MemoryGel breast implants;
the amount and timing of expenses to be incurred with respect to the
MemoryGel breast implants post-approval study; the ability of the
Company to move forward in a timely and cost-effective manner with the
PMAs for its hyaluronic acid-based dermal fillers; the timing and
outcome of the PMAs submitted to the FDA; results and expenses of
clinical development programs; the timing and outcome of various
clinical trials undertaken by the Company; the impact on revenue and
expenses of delays in FDA approval and other governmental agencies for
the approval and sale of any of the Company’s
products; seasonal and economic factors (U.S. and internationally) which
affect demand for aesthetic products and procedures; the ability of the
Company to identify and implement other product opportunities in the
global aesthetics marketplace; competitive pressures and other factors
such as the introduction or regulatory approval of new products by
competitors and pricing of competing products and the resulting effects
on sales and pricing of the Company’s
products; disruptions or other problems with sources of supply;
significant product liability or other claims arising from the sales or
uses of products; negative publicity concerning the safety of the
Company's products; difficulties with new product development,
introduction and market acceptance; changes in the mix of the Company’s
products sold; patent and intellectual property conflicts; product
recalls; FDA or other governmental agency rejection of new or existing
products; changes in Medicare, Medicaid or third-party reimbursement
policies; changes in government regulation; use of hazardous or
environmentally sensitive materials; and other events.
Important factors that may cause such a difference for Mentor include,
but are not limited to, those factors described in the Company’s
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, recent
Current Reports on Form 8-K and other Securities and Exchange Commission
filings. These filings discuss the foregoing risks as well as other
important risk factors that could contribute to such differences or
otherwise affect the Company’s business,
results of operations and financial condition. The Company undertakes no
obligation to revise or update publicly any forward-looking statement
for any reason.
Note Regarding Use of Non-GAAP Financial
Measures
The financial measures of non-GAAP gross margin, non-GAAP SG&A expense,
and diluted non-GAAP earnings per share from continuing operations
included in this press release are different from those otherwise
presented under GAAP as these non-GAAP measures exclude certain items.
In the second quarter of fiscal year 2009, these items included $1.5
million in expenses related to the evaluation of a potential strategic
opportunity and a $2.3 million tax benefit related to a restructuring of
the Company’s foreign operations. Neither of
these items were recorded in the second quarter of fiscal 2008. The
second quarter of fiscal year 2008 included expense recorded as cost of
sales as a result of the "step-up" valuation of inventory related to the
Perouse acquisition. This item was not recorded in the second quarter of
fiscal 2009. Mentor has provided these measures in addition to GAAP
financial results because management believes these non-GAAP measures
provide a consistent basis for comparison between quarters and of
profitability rates that are not influenced by these charges and
therefore are helpful in understanding Mentor's underlying operating
results. These non-GAAP measures are some of the primary measures
Mentor's management uses for planning and forecasting. These measures
are not in accordance with, or an alternative to, GAAP and these
non-GAAP measures may not be comparable to information provided by other
companies. Reconciliations of GAAP to non-GAAP results are presented at
the end of this press release.
About Mentor
Mentor is a leading supplier of medical products for the global
aesthetic market. The Company develops, manufactures, and markets
innovative, science-based products for surgical and non-surgical medical
procedures that allow patients to retain a more youthful appearance and
improve their quality of life. The Company's website is www.mentorcorp.com.
|
MENTOR CORPORATION
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
(unaudited, in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
|
September 26,
|
|
September 28,
|
|
Percent
|
|
September 26,
|
|
September 28,
|
|
Percent
|
|
|
|
2008
|
|
2007
|
|
Change
|
|
2008
|
|
2007
|
|
Change
|
|
Net sales
|
|
$
|
84,488
|
|
|
$
|
85,390
|
|
|
(1
|
)%
|
|
$
|
190,024
|
|
|
$
|
180,954
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
25,615
|
|
|
25,480
|
|
|
(1
|
)%
|
|
55,010
|
|
|
46,704
|
|
|
(18
|
)%
|
|
Gross profit
|
|
58,873
|
|
|
59,910
|
|
|
(2
|
)%
|
|
135,014
|
|
|
134,250
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
38,033
|
|
|
33,397
|
|
|
(14
|
)%
|
|
81,000
|
|
|
69,442
|
|
|
(17
|
)%
|
|
Research and development
|
|
10,871
|
|
|
12,203
|
|
|
11
|
%
|
|
21,853
|
|
|
22,517
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48,904
|
|
|
45,600
|
|
|
(7
|
)%
|
|
102,853
|
|
|
91,959
|
|
|
(12
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income from continuing operations
|
|
9,969
|
|
|
14,310
|
|
|
(30
|
)%
|
|
32,161
|
|
|
42,291
|
|
|
(24
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(1,327
|
)
|
|
(1,447
|
)
|
|
8
|
%
|
|
(2,797
|
)
|
|
(2,911
|
)
|
|
4
|
%
|
|
Interest income
|
|
513
|
|
|
1,373
|
|
|
(63
|
)%
|
|
1,107
|
|
|
6,147
|
|
|
(82
|
)%
|
|
Other income (expense), net
|
|
1,539
|
|
|
(675
|
)
|
|
328
|
%
|
|
1,573
|
|
|
(969
|
)
|
|
262
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
10,694
|
|
|
13,561
|
|
|
(21
|
)%
|
|
32,044
|
|
|
44,558
|
|
|
(28
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
554
|
|
|
3,532
|
|
|
84
|
%
|
|
6,802
|
|
|
12,785
|
|
|
47
|
%
|
|
Net income from continuing operations
|
|
10,140
|
|
|
10,029
|
|
|
1
|
%
|
|
25,242
|
|
|
31,773
|
|
|
(21
|
)%
|
|
Loss from discontinued operations (net of income tax benefit of
$218 and $51 for Q2; $431 and $63 for YTD)
|
|
(334
|
)
|
|
(111
|
)
|
|
(201
|
)%
|
|
(719
|
)
|
|
(117
|
)
|
|
(515
|
)%
|
|
Net income
|
|
$
|
9,806
|
|
|
$
|
9,918
|
|
|
(1
|
)%
|
|
$
|
24,523
|
|
|
$
|
31,656
|
|
|
(23
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing operations
|
|
$
|
0.30
|
|
|
$
|
0.29
|
|
|
3
|
%
|
|
$
|
0.75
|
|
|
$
|
0.85
|
|
|
(12
|
)%
|
|
Loss per share from discontinued operations
|
|
(0.01
|
)
|
|
-
|
|
|
-
|
|
|
(0.02
|
)
|
|
-
|
|
|
-
|
|
|
Basic earnings per share
|
|
$
|
0.29
|
|
|
$
|
0.29
|
|
|
0
|
%
|
|
$
|
0.73
|
|
|
$
|
0.85
|
|
|
(14
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing operations
|
|
$
|
0.28
|
|
|
$
|
0.27
|
|
|
4
|
%
|
|
$
|
0.68
|
|
|
$
|
0.76
|
|
|
(11
|
)%
|
|
Loss per share from discontinued operations
|
|
(0.01
|
)
|
|
-
|
|
|
-
|
|
|
(0.02
|
)
|
|
-
|
|
|
-
|
|
|
Diluted earnings per share
|
|
$
|
0.27
|
|
|
$
|
0.26
|
|
|
4
|
%
|
|
$
|
0.66
|
|
|
$
|
0.76
|
|
|
(13
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
0
|
%
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
33,520
|
|
|
34,044
|
|
|
2
|
%
|
|
33,496
|
|
|
37,237
|
|
|
10
|
%
|
|
Diluted
|
|
39,311
|
|
|
40,683
|
|
|
3
|
%
|
|
39,294
|
|
|
43,803
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MENTOR CORPORATION
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
(unaudited, in thousands, except per share data)
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
|
|
September 26, 2008
|
|
September 28, 2007
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
GAAP
|
|
Adjustments
|
|
Adjusted
|
|
GAAP
|
|
Adjustments
|
|
Adjusted
|
|
Net sales
|
|
$
|
84,488
|
|
|
|
|
$
|
84,488
|
|
|
$
|
85,390
|
|
|
|
|
$
|
85,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
25,615
|
|
|
|
|
25,615
|
|
|
25,480
|
|
|
(1,375
|
)
|
|
24,105
|
|
|
Gross profit
|
|
58,873
|
|
|
-
|
|
|
58,873
|
|
|
59,910
|
|
|
1,375
|
|
|
61,285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
38,033
|
|
|
(1,526
|
)
|
|
36,507
|
|
|
33,397
|
|
|
|
|
33,397
|
|
|
Research and development
|
|
10,871
|
|
|
|
|
10,871
|
|
|
12,203
|
|
|
|
|
12,203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48,904
|
|
|
(1,526
|
)
|
|
47,378
|
|
|
45,600
|
|
|
-
|
|
|
45,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income from continuing operations
|
|
9,969
|
|
|
1,526
|
|
|
11,495
|
|
|
14,310
|
|
|
1,375
|
|
|
15,685
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(1,327
|
)
|
|
|
|
(1,327
|
)
|
|
(1,447
|
)
|
|
|
|
(1,447
|
)
|
|
Interest income
|
|
513
|
|
|
|
|
513
|
|
|
1,373
|
|
|
|
|
1,373
|
|
|
Other income (expense), net
|
|
1,539
|
|
|
|
|
1,539
|
|
|
(675
|
)
|
|
|
|
(675
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
10,694
|
|
|
1,526
|
|
|
12,220
|
|
|
13,561
|
|
|
1,375
|
|
|
14,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
554
|
|
|
2,909
|
|
|
3,463
|
|
|
3,532
|
|
|
454
|
|
|
3,986
|
|
|
Net income from continuing operations
|
|
10,140
|
|
|
(1,383
|
)
|
|
8,757
|
|
|
10,029
|
|
|
921
|
|
|
10,950
|
|
|
Loss from discontinued operations
|
|
(334
|
)
|
|
|
|
(334
|
)
|
|
(111
|
)
|
|
|
|
(111
|
)
|
|
Net income
|
|
$
|
9,806
|
|
|
$
|
(1,383
|
)
|
|
$
|
8,423
|
|
|
$
|
9,918
|
|
|
$
|
921
|
|
|
$
|
10,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing operations
|
|
$
|
0.30
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.26
|
|
|
$
|
0.29
|
|
|
$
|
0.03
|
|
|
$
|
0.32
|
|
|
Loss per share from discontinued operations
|
|
(0.01
|
)
|
|
-
|
|
|
(0.01
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Basic earnings per share
|
|
$
|
0.29
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.25
|
|
|
$
|
0.29
|
|
|
$
|
0.03
|
|
|
$
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing operations
|
|
$
|
0.28
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.24
|
|
|
$
|
0.27
|
|
|
$
|
0.02
|
|
|
$
|
0.29
|
|
|
Loss per share from discontinued operations
|
|
(0.01
|
)
|
|
-
|
|
|
(0.01
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Diluted earnings per share
|
|
$
|
0.27
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.23
|
|
|
$
|
0.26
|
|
|
$
|
0.02
|
|
|
$
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
|
|
$
|
0.20
|
|
|
-
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
-
|
|
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
33,520
|
|
|
33,520
|
|
|
33,520
|
|
|
34,044
|
|
|
34,044
|
|
|
34,044
|
|
|
Diluted
|
|
39,311
|
|
|
39,311
|
|
|
39,311
|
|
|
40,683
|
|
|
40,683
|
|
|
40,683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MENTOR CORPORATION
|
|
SALES BY PRINCIPAL PRODUCT LINE
|
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
|
|
|
September 26,
|
|
September 28,
|
|
Percent
|
|
September 26,
|
|
September 28,
|
|
Percent
|
|
|
|
2008
|
|
2007
|
|
Change
|
|
2008
|
|
2007
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Breast aesthetics
|
|
$
|
74,411
|
|
$
|
75,674
|
|
(2
|
)%
|
|
$
|
168,343
|
|
$
|
160,933
|
|
5
|
%
|
|
Body contouring
|
|
3,389
|
|
3,661
|
|
(7
|
)%
|
|
7,134
|
|
7,690
|
|
(7
|
)%
|
|
Other aesthetics, including facial
|
|
6,688
|
|
6,055
|
|
10
|
%
|
|
14,547
|
|
12,331
|
|
18
|
%
|
|
Net sales
|
|
$
|
84,488
|
|
$
|
85,390
|
|
(1
|
)%
|
|
$
|
190,024
|
|
$
|
180,954
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MENTOR CORPORATION
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(unaudited, in thousands)
|
|
|
|
|
|
|
|
|
Assets
|
|
September 26, 2008
|
|
|
March 31, 2008
|
|
Current assets:
|
|
|
|
|
|
|
Cash and marketable securities
|
|
$
|
97,812
|
|
|
$
|
109,915
|
|
Accounts receivable, net
|
|
77,111
|
|
|
82,060
|
|
Inventories
|
|
52,011
|
|
|
49,940
|
|
Deferred income taxes
|
|
29,389
|
|
|
29,040
|
|
Prepaid expenses and other
|
|
26,895
|
|
|
19,307
|
|
Total current assets
|
|
283,218
|
|
|
290,262
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
68,804
|
|
|
58,252
|
|
Intangible assets, net
|
|
36,430
|
|
|
36,336
|
|
Goodwill, net
|
|
47,099
|
|
|
49,707
|
|
Other assets
|
|
6,670
|
|
|
6,022
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
442,221
|
|
|
$
|
440,579
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
Current liabilities
|
|
$
|
114,112
|
|
|
$
|
118,389
|
|
Long-term liabilities
|
|
28,371
|
|
|
29,156
|
|
Convertible subordinated notes
|
|
150,000
|
|
|
150,000
|
|
Shareholders’ equity
|
|
149,738
|
|
|
143,034
|
|
Total liabilities and shareholders' equity
|
|
$
|
442,221
|
|
|
$
|
440,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MENTOR CORPORATION
|
|
CALCULATION OF DILUTED EARNINGS PER SHARE
|
|
(Unaudited, in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2008
ended March 31, 2008
|
|
Fiscal Year 2009
Six months ended September 26, 2008
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
FY
|
|
Q1
|
|
Q2
|
|
FY
|
|
Net income as reported from continuing operations
|
|
$
|
21,744
|
|
|
$
|
10,029
|
|
|
$
|
12,112
|
|
|
$
|
11,066
|
|
$
|
54,951
|
|
$
|
15,102
|
|
|
$
|
10,140
|
|
|
$
|
25,242
|
|
|
Add back after tax interest expense on convertible notes
|
|
802
|
|
|
802
|
|
|
802
|
|
|
802
|
|
3,208
|
|
802
|
|
|
802
|
|
|
1,604
|
|
|
Numerator for diluted EPS calculation for continuing operations
|
|
$
|
22,546
|
|
|
$
|
10,831
|
|
|
$
|
12,914
|
|
|
$
|
11,868
|
|
$
|
58,159
|
|
$
|
15,904
|
|
|
$
|
10,942
|
|
|
$
|
26,846
|
|
|
Numerator for diluted EPS calculation for discontinued operations
|
|
$
|
(6
|
)
|
|
$
|
(111
|
)
|
|
$
|
(170
|
)
|
|
$
|
8,751
|
|
$
|
8,464
|
|
$
|
(385
|
)
|
|
$
|
(334
|
)
|
|
$
|
(719
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
40,465
|
|
|
34,044
|
|
|
33,602
|
|
|
33,443
|
|
35,375
|
|
33,472
|
|
|
33,520
|
|
|
33,496
|
|
|
Shares issuable through exercise of stock options
|
|
678
|
|
|
659
|
|
|
502
|
|
|
312
|
|
538
|
|
271
|
|
|
222
|
|
|
247
|
|
|
Shares issuable through conversion of convertible notes
|
|
5,165
|
|
|
5,170
|
|
|
5,177
|
|
|
5,187
|
|
5,175
|
|
5,196
|
|
|
5,207
|
|
|
5,201
|
|
|
Additional dilution for unvested restricted shares outstanding
|
|
285
|
|
|
292
|
|
|
308
|
|
|
299
|
|
296
|
|
338
|
|
|
362
|
|
|
350
|
|
|
Shares issuable through exercise of warrants (treasury stock
method)
|
|
357
|
|
|
518
|
|
|
259
|
|
|
-
|
|
65
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Denominator for diluted EPS from continuing operations
|
|
46,950
|
|
|
40,683
|
|
|
39,848
|
|
|
39,241
|
|
41,449
|
|
39,277
|
|
|
39,311
|
|
|
39,294
|
|
|
Denominator for diluted EPS from discontinued operations
|
|
40,465
|
|
|
34,044
|
|
|
33,602
|
|
|
39,241
|
|
41,449
|
|
33,472
|
|
|
33,520
|
|
|
33,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
$
|
0.48
|
|
|
$
|
0.27
|
|
|
$
|
0.32
|
|
|
$
|
0.30
|
|
$
|
1.40
|
|
$
|
0.40
|
|
|
$
|
0.28
|
|
|
$
|
0.68
|
|
|
Diluted earnings (loss) per share from discontinued operations
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.22
|
|
$
|
0.20
|
|
$
|
(0.01
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mentor Corporation
Michael O’Neill
Vice
President and Chief Financial Officer
805-879-6082
